• by Sarah Mahoney  @mahoney_sarah, October 12, 2011

In an effort to pay down its debt, Liz Claiborne Inc. says it is selling $328 million worth of its brands, including its namesake. While there’s no word yet on what it will rechristen itself, in making the announcement, William L. McComb, CEO of the New York-based company, says it is exploring options that “will better reflect our keen focus on building and growing our three global lifestyle brands – Juicy Couture, Lucky Brand and Kate Spade.”

JCPenney will pay $267.5 million for worldwide rights to the Liz Claiborne family of brands, as well as Monet jewelry. Since August 2010, Penney has been the exclusive licensee for all Liz Claiborne and Claiborne-branded merchandise in the U.S. and Puerto Rico, and it says sales have exceeded its expectations.

“As we seek to be part of our customers’ everyday lives, ensuring that we offer the brands that are most relevant to them is a crucial component in transforming JCPenney into America’s favorite store,” says Ron Johnson, the Plano, Tex.-based retailer’s incoming CEO. “Liz Claiborne and Monet are classic brands that resonate deeply with consumers. Our ownership of these brands gives us a strong foundation for continued innovation and growth.”

Additionally, Bluestar Alliance will buy Claiborne’s Kensie brand, and Kohl’s, which has already been selling clothing under the Dana Buchman name, will acquire those rights. Each deal is expected to generate $40 million. Claiborne also says it has agreed to an early end for its DKNY Jeans and DKNY Active license agreements at the end of this year, 12 months ahead of schedule.

 In recent months, Claiborne has also sold off its Mexx fashion brand, although it continues to be in a Mexx joint venture, as well as certain fragrances to Elizabeth Arden.

After the deals, which are expected to close in the next quarter, Claiborne says it expects its year-end 2011 net debt to be in the range of $270 to $290 million.

“Over the past few years, we have worked diligently to turn this into a more efficient, dynamic, brand-centric, retail-based company, and today marks the culmination of these efforts,” McComb says in its release. “At the close of these transactions, at a time when most economists in the world are now agreeing that major European and the U.S. markets are facing significant risks of another recession, we will be a more appropriately levered, more capital efficient, growth-oriented company.”